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Private Equity7 min read

The Hidden Costs of Managing Exclusively to EBITDA

EBITDA is a useful measure of operating earnings and a poor management objective, especially in asset-heavy service businesses.

In this article

  1. Why the pressure is rising
  2. What EBITDA leaves out
  3. The addback problem
  4. Longer holds change who pays
  5. What to measure alongside EBITDA